On Tuesday morning, the Shanghai Composite index fell more than 8.2 percent in just the first three minutes of trading. This is merely a continuation of the chaotic state of the Chinese stock market over the course of the past month. The Shanghai Composite Index has fallen over 32 percent in three weeks, with 12 percent coming from the past week alone.
A partial explanation for China's situation can be traced back to policies implemented by the Chinese government. Strict rules for investing were enacted in an attempt to control the flow of the stock market; only wealthy Chinese citizens and companies could afford to meet the basic requirements. Typical minimum investments for unit trusts, for example, were between 5,000 and 10,000 Chinese yuan (between 800 and 1,600 USD, or 500 and 1,000 euros); minimum wage employees frequently only make 1,300 yuan per month, and the average salary of an employee in an urban region is approximately 29,000 yuan per month. This section of the population was effectively blocked from participating in the stock market because investments were unaffordable.
However, several years ago, the Chinese government decided to relax their strict investment policies in an attempt to rely on a more free market approach. Previously, it had been difficult for Chinese citizens to invest using borrowed money; with fewer regulations and looser invest...
The $5.25 billion Panama Canal expansion project, intended to accommodate Post-Panamax ships that are currently too big to pass through the current Canal, is scheduled to be operational by April 2016. According to the Panama Canal Authority, the project will increase the canal's annual capacity from 300 million tons of cargo to 600 million tons and will effectively triple the amount of cargo that can be brought on a single ship. The project will facilitate the burgeoning Asia...
On Tuesday morning, the Shanghai Composite index fell more than 8.2 percent in just the first three minutes of trading. This is merely a continuation of the chaotic state of the Chinese stock market over the course of the past month. The Shanghai Composite Index has fallen over 32 percent in three weeks, with 12 percent coming from the past week alone.
A partial explanation for China's situation can be traced back to policies implemented by the Chinese government. Strict rules for investing were enacted in an attempt to control the flow of the stock market; only wealthy Chinese citizens and companies could afford to meet the basic requirements. Typical minimum investments for unit trusts, for example, were between 5,000 and 10,000 Chinese yuan (between 800 and 1,600 USD, or 500 and 1,000 euros); minimum wage employees frequently only make 1,300 yuan per month, and the average salary of an employee in an urban region is approximately 29,000 yuan per month. This section of the population was effectively blocked from participating in the stock market because investments were unaffordable.
However, several years ago, the Chinese government decided to relax their strict investment policies in an attempt to rely on a more free market approach. Previously, it had been difficult for Chinese citizens to invest using borrowed money; with fewer regulations and looser invest...
